With the economy in crisis, US President-elect Barack Obama yesterday
unveiled his economic team pick to shore up financial markets and tackle the
worst financial crisis since the Great Depression in 1930s.
NOMINATIONS OF ECONOMIC VETERANS
Timothy Geithner, the head of the Federal Reserve Bank of New York will
become secretary of the treasury, and former Treasury Secretary Lawrence Summers
will be head of the National Economic Council.
Meanwhile, Obama also named University of California at Berkeley economist
Christina Romer as the head of the White House Council of Economic Advisers.
At a news conference in Chicago, Obama said his newly minted economic aides
offered "sound judgment and fresh thinking" at a time of economic crisis.
"Vice President-elect (Joseph) Biden and I have assembled an economic team
with the vision and expertise to stabilize our economy, create jobs, and get
America back on track," Obama said.
"Even as we face great economic challenges, we know that great opportunity is
at hand -- if we act swiftly and boldly. That's the mission our economic team
will take on," he added.
Geithner, 47, is the current president of the New York Federal Reserve. He
was born in New York. He attended Dartmouth College and Johns Hopkins
University's School of Advanced International Studies.
Geithner has studied Japanese and Chinese and has lived in Zimbabwe, India,
Thailand, Japan and China.
"With stellar performances and outstanding results at every stage of his
career, Tim (Geithner) has earned the confidence and respect of business,
financial and community leaders, members of Congress, and political leaders
around the world," said Obama, who will take the oath of office on Jan. 20 as
the 44th president of the United States.
"And I know he will do so once again as America's next treasury secretary,
the chief economic spokesman for my administration," he added.
Obama also praised Summer's thinking, writing and speaking have set the terms
of the debate, "with respect to both our current financial crisis and other
pressing economic issues of our time."
"I'm glad he will be by my side, playing the critical role of coordinating my
administration's economic policy in the White House, and I will rely heavily on
his advice as we navigate the uncharted waters of this economic crisis," said
the president-elect.
Media and politicians are hailing Obama's top economic appointments. Senator
Richard Shelby, a Republican from Alabama, told ABC that Geithner's expected
nomination is "overall a good appointment."
"I've worked with Tim Geithner. He's young. He's innovative. I believe he
will be up to the challenge. He knows a lot about the economy and he knows a lot
about problems," Shelby said. "He has been involved in the bailout. ... He is a
breath of fresh air, so to speak. I think he will do well."
The Wall Street Journal editorial page called Geithner "probably the best
choice," as "he guarantees the smoothest transition from the current Treasury
team."
"This continuity is especially important given that the credit markets have
taken a major step backward since Obama's election."
The Politico said Obama's economic team is getting "rave reviews on Wall
Street and will likely get an easy ride through the Senate."
FAR MORE AGGRESSIVE STIMULUS PLAN
With the financial crisis looming as a top priority of his term, Obama vowed
the new administration "cannot hesitate and cannot delay" to stem the turmoil
and save the economy.
"Right now, our economy is trapped in a vicious cycle: the turmoil on Wall
Street means a new round of belt-tightening for families and businesses on Main
Street, and as folks produce less and consume less, that just deepens the
problems in our financial markets," he said.
The president-elect said these extraordinary stresses on the US financial
system require extraordinary policy responses.
"And my administration will honor the public commitments made by the current
administration to address this crisis," he noted.
Obama pledged he will propose a recovery plan for both Wall Street and Main
Street, a plan "that stabilizes our financial system and gets credit flowing
again," while creating and saving 2.5 million jobs.
Obama's team is putting together a new economic stimulus plan containing more
than US$500 billion in federal spending and tax cuts over the next two years,
Obama aides and advisers were quoted as saying.
That package would be far more aggressive than anything envisioned during the
campaign, according to a report by The Wall Street Journal.
Moreover, some economists speculated that the price tag could reach US$700
billion.
Obama declined to say how large the stimulus plan will be, but he said the
plan will be "significant enough that it really gives a jolt to the economy."
"I want to see it enacted right away. It is going to be of a size and scope
that is necessary to get this economy back on track," he added.
The president-elected also warned that full recovery will not happen
immediately. "I want to repeat: This will not be easy. There are no shortcuts or
quick fixes to this crisis, which has been many years in the making, and the
economy is likely to get worse before it gets better," he stressed.
"And to make the investments we need, we'll have to scour our federal budget,
line by line, and make meaningful cuts and sacrifices," he noted.
But in an effort to bring confidence into the financial markets, Obama stated
he was hopeful about the future.
"I have full confidence in the wisdom and ingenuity of my economic team and
in the hard work, courage, and sacrifice of the American people," he said,
adding he knew the United States will work out the crisis "because we've done it
before."